Fiduciary Duty of Spouses During Marriage

Are You in The Dark About Your Marital Income and Expenses?

Since marriage is a legal contract, spouses owe duties to each other under California Family and Corporate Law. In California, spouses owe each other fiduciary duties like those of business partners, requiring the highest good faith and fair dealing. These duties include full disclosure of material facts, access to information, and obtaining written consent for certain transactions.  Remedies for breaches of these duties include claims for impairment of community estate interests, restitution, and potentially attorney fees and other sanctions.  

Spouses Must Act with The Highest Good Faith and Fair Dealing Towards Each Other, Avoiding Any Unfair Advantage
Good faith and fair dealing include full disclosure of material facts regarding community assets and debts, providing access to information and records, and obtaining written consent for certain transactions involving community property.

Fiduciary Duty
California law imposes a fiduciary duty on spouses, requiring them to act with the highest good faith and fair dealing in their transactions with each other. This duty is akin to the fiduciary obligations of business partners, as specified in Family Code Section 721 and Corporations Code Sections 16403 and 16404.

No Unfair Advantage
The fiduciary relationship between spouses is intended to ensure that neither spouse takes unfair advantage of the other, maintaining a standard of mutual trust and confidence. Vai v. Bank of America Nat'l Trust & Sav. Asso., 56 Cal. 2d 329

Specific Duties
The fiduciary duties between spouses encompass several specific obligations. Spouses must fully disclose all material facts and information regarding community assets and debts, ensuring transparency in the management of community property. This includes providing access to books and records related to community transactions and rendering true and full information upon request. Certain transactions, such as selling or encumbering community personal property used as the family dwelling, require the written consent of the other spouse.

What Remedies are Available to Me if My Spouse Refuses to Share Financial Information?
If a spouse breaches their fiduciary duty, the other spouse has several potential remedies. A claim can be made for any breach that results in impairment to the claimant spouses undivided one-half interest in the community estate.  Remedies may include restitution and, in cases of postseparation breaches, money sanctions and attorney fees.

Conclusion
The law requires spouses to manage community property transparently and equitably, maintaining mutual trust and confidence throughout the marriage.  Unfortunately, some marriages lack transparency regarding finances and financial transactions.  Uncovering assets and debts and use of community funds is essential to achieving a fair division of the community upon divorce.

California family law is very complex, so it is important you discuss all your facts and circumstances with a knowledgeable attorney to ensure the best outcome of your case. Experienced attorneys at Livingstone Law have a successful track record in modifying spousal support. Fill out our contact form for a free consultation


Attorney Vera A. Livingstone

For the past 20 years, Vera has focused primarily on Family Law matters, where she has successfully litigated difficult custody issues, move-away trials, and financial issues. Her strengths include good, close client relationships, cross-examination, and depositions. At all times, she works toward case resolution with an eye on efficiency and client satisfaction.

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